Jump to content

144-month Car Loan?!?!


zeitgeist57

Recommended Posts

Interesting.

 

Gen Xers carry the highest auto loan balances with a median of $18,741 and are the most likely of other age groups to have a car loan.

 

"I can't believe young people are eschewing cars in favor of public transportation and Uber," says generation saddled with incredible amount of debt just to own cars.

Link to comment
Share on other sites

  • Replies 79
  • Created
  • Last Reply

Top Posters In This Topic

https://jalopnik.com/americas-car-loan-debt-is-out-of-control-and-getting-wo-1832635925

 

This topic's been debated enough, but I'm interested in the progression of auto-loan debt numbers and whether the 90+day delinquency percentage (2.5%). I'm curious in the loan growth relative to wage growth...assuming the complaints come from loans being higher. Though, this graph isn't looking good:

 

DzN533ZWsAEvILo.jpg

 

The comments are interesting as well, regarding NHTSA standards (and global ones) making more expensive safety measurements a requirement on most vehicles. If cheaper, third-world/global car platforms were available for sale, would we be having the same financial issues? Drive a Tata Nano around your city for a few years, scrap it when it dies...

 

 

 

EDIT: To be clear, I have used this thread to transition the conversation away from the specialized car market to increasing, "gen-pop" consumer debt levels around car loans. :)

 

 

I found the comments section interesting as well clay, esp the discussions regarding how there hasn't been any spending power growth, even when there has been wage growth.

 

I don't know that we can blame "regulations" for all of the inflated cost of cars. Technology has become the driver in the marketplace for both competition and the standard for new luxury. It has borne out that people will pay more for more tech options and nobody is forcing them to do that.

 

I do think the US dealer salesman compensation model should bore some of the responsibility for the increased cost in cars. The Sales model incentives is for the entire industry to convince the buyer to buy a more expensive car than they need. Sometimes they do this through charisma, old fashioned salesmanship, sometimes through subterfuge, like the 4 box and diverting attention to payments over total cost, sometimes through asymmetric information, such as the rebate system, and sometimes through coercion, by dealers limiting the supply of less expensive cars by just not ordering base model or low option cars and stocking them on lots. A dealer car buying experience is not a level playing field for the buyer - the dealer's job is to grow your debt and based on the numbers, mission accomplished.

 

even if somehow an exception was made for "3rd world cheap cars" like the tata nano, the cabal that is the National Automobile Dealer's Association would find a way to criple it in the marketplace so that sales were slow. Don't believe me? look at what they did to the motorcycle industry.

Edited by Geeto67
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...